Minden Company is a wholesale distributor of premium European chocolates. The company balance sheet as of April 30, is as follows:

A B C SCHEDULE 9 Hampton Freeze, Inc. N Budgeted Income Statement For the Year Ended December 31, 2017 Schedules 6 Sales 1 $ 2,000,000 7 Cost of goods sold 1, 6 1,300,000 8 Gross margin 700,000 1260 9 Selling and administrative expenses 7 61 2101093A 576,000 Shalom ush 10 Net operating Income 124,000 11 Interest expense 8 21,900 more istoT 12 Net Income $ 102,100 13 Schedule 7 Schedule 8 Schedule 9 SMinden Company Balance Sheet April 30 Assets Cash 3 9.000 Accounts receivable 54.000 Inventory 30.000 Buildings and equipment. net of depreciation 207,000 Total assets 8300.000 Liabilities and Stockholders' Equity Accounts payable S 63.000 Note payable 14.500 Common stock 180.000 Retained earnings 42.500 Total liabilities and stockholders' equity 8300.000 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at 3200.000 for May. Ofthese sales. $60,000 will be for cash: the remainder will be credit sales. One-half ofa month's credit sales are collected in the month the sales are made. and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May. b. Purchases of inventory are expected to total 3 |20.000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase: the remainder are paid in the following month. All of the April 30 accounts ptyable to suppliers will be paid during May. 0. The May 3! inventory balance is budgeted at 840.000. d. Selling and administrative expenses for May are budgeted at 872.000. exclusive of' depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2.000 for the month. e. The note payable on the April 30 balance sheet will be paid during May. with $100 in interest. {All ofthe interest relates to May.) I\". New refrigerating equipment costing 86.500 will be purchased for cash during May. g. During May. the company will borrow 820.000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Required: 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. 3. Prepare a cash budget for May. 4. Using g Schedule 9 as your guide. prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May 3]